{ عبد القادر طحان مستوى جديد في العلاقات التركية السعودية سيجعل الصيف القادم وصفحة جديدة من تحالف الكبار | Mersat Real Estate | Real estate experts make the decision
Ankara - Riyadh

Ankara - Riyadh, and a New Chapter of the Overlords Alliance

Last Updated: 2023-07-27
+ Font size -
48 13705

Ankara - Riyadh, and a New Chapter of the Overlords Alliance

The Subject:
Turkish President Recep Tayyip Erdoğan's historic visit to Saudi Arabia seems to remain the most prominent regional event that brings with it the broader regional geopolitics shift, necessarily implying greater economic openness and trade and investment between the two greatest regional powers.

 
The Predicate:
Certainly, the Turkish economy will recover after the thaw in Ankara - Riyadh relations, because the Saudi market is of great importance to Turkish exporters, and Turkish products are popular in KSA compared to other foreign products.
 
So, what does the new era of economic relations include?  What forms of economic participation will be reactivated? How will Türkiye's economic landscape change in the coming period? Who are the winners and the losers economically from this rapprochement?

 
A Rapid Tide Follows the Decline in Relations:
Turkish-Saudi relations have grown steadily over the past decades until 2018, when the events associated with the killing of Saudi journalist Jamal Khashoggi and the subsequent repercussions have led to relations between the two countries reach a low point, as the lowest point was in 2021 that affected investment and export traffic.
 
Indeed, it has recently risen to 200% in March to start a promising new phase of economic relations following the Turkish president's visit to the Kingdom.
 
These attempts of reconciliation between Ankara and Riyadh will bring about a rapid recovery in all economic sectors between the two regional powers, such as tourism, exports, construction and others, that will revive the Turkish lira, which continues to suffer from low value.

 
A Doubled Tourist Season:
This long-awaited return must fill all previous gaps, particularly tourism in Türkiye, considering Istanbul's position as a fashion and tourism hub and a destination for the Arabian Gulf tourists, especially Saudis.
 
For years, Saudi tourists ranked third on the list of tourists coming to Türkiye, falling to 10th place recently. But with the recent warming of relations between Ankara and Riyadh, the next few months are expected to have an active and doubled tourist season for Saudi tourists. Hence, this would also revive the Turkish lira, which is still suffering from a decline in its value.

 
"Made in Türkiye", Again in KSA's Markets:
In fact, the new détente will return to shorten the way for Turkish exporters' products to Saudi Arabia, as the exports with "Made in Türkiye" term will return to their direct normal course after the Turkish export companies had used third countries before entering the Turkish market, to circumvent the undeclared blockade and the losses it could have caused with customers and producers alike.
 
We, as Irsaa for International Trade, were one of the ones who experienced this difficult experience and we hope that today we are going beyond this stage. However, what we would like to say is that by the virtue of our experience in the Saudi market, this market is always attractive and welcoming to Turkish products. In Irsaa, our list of exports included  the industrial production lines and food products, industrial products, chemical products, furniture, timber, stone, alabaster, building materials, accessories, decoration, cladding, broadcasting and communication technologies, all of which were manufactured in Türkiye.
 
Like other Turkish exporters and thousands of Saudi customers, we expect the talks between Riyadh and Ankara to lead to a recovery in bilateral trade and a reduction in restrictions on Turkish exports to the kingdom. Where Turkish exports, which are back with the term of "Made in Türkiye", reached nearly $70 million in the first three months of this year, up from $55 million over the same period last year, up 25%, which is very promising.
 
These indicators peaked in March, leaping from $18.5 million to $58 million, an increase of 215 per cent year-on-year, and it is understood that this stark rise in bilateral trade will not stop.
 
This openness follows a silent boycott imposed by Saudi Arabia on Turkish goods since 2018, as a result, Turkish exports to Saudi Arabia dropped sharply by nearly 92% throughout 2021, falling from $3.1 billion to $2.3 billion, and from this to $189 million with the embargo.
Simultaneously with the loss of the Turkish lira 44 percent of its value against the U.S. dollar in 2021.

 
More Saudi Real Estate in the Hands of Turks:
The new page will be primarily promising for Turkish contractors in Saudi Arabia, after contracts and businesses have faltered there to the extent that Turkish contractors have faced in recent months real problems in collecting the entitlements of their work previously contracted in KSA, and what is currently under construction. Hence, this push forward in bilateral relations moves the wheel of the contracting undoubtedly, and ends the stalemate for Turkish construction companies in Saudi Arabia.
 
According to figures from the Turkish Contractors Association, Turkish companies carried out a total of $3.43 billion in projects in the Kingdom in 2018, suddenly falling to $559 million in 2019, reaching $21 million in 2020.
 
The Ministry of Foreign Affairs also confirms that there are more than 200 Turkish companies operating in Saudi Arabia, where Saudi Arabia is the second Gulf state after Qatar, and the seventh country in the world in terms of the volume of work accomplished by Turkish contractors there. To date, Turkish contracting companies have carried out more than 100 projects in Saudi Arabia. Indeed, Saudi investment in Türkiye is estimated at $2 billion.
 
In 2017, Saudi citizens owned 3,545 properties in Türkiye, as we experienced in our company Mersat Real Estate closely the desire of thousands of Saudis to really own a property in Türkiye. Definitely, Saudi nationality has always remained the second most owning property in Türkiye over the past five years, and we are honored by many Saudi customers who have had the experience of purchasing a unique property through our company, and we look forward to repeat this experience with them again,  since the indicators say that everyone is seeking to throw everything behind him and start a new chapter.

 
The Conclusion:
Ultimately, wealthy Gulf states have significant investment potential that can help solve many of Ankara's economic problems. In addition to previously strong trade in the specialized sectors of both countries, Turks will benefit from efforts to resume trade with Saudi Arabia after a nearly four-year break.


 
 

Last Updated::2023-07-27

Real estate Articles

The real estate market in Istanbul is the best choice for investors
Istanbul is a destination for millions of tourists and investors who want to buy a property in Turkey, so what are the types of real estate in it?
Find out why you should deal with a reliable real estate company
Mersat Real Estate recommends always dealing with real estate companies and not listening to rumors
A comprehensive guide for everything related to buying a property in Turkey
Are you interested in real estate investment in Türkiye? Here's everything you need to know about investing in Türkiye
Torlow's balcony
Turlo Glass Balcony, a beautiful glass balcony for lovers of adrenaline, excitement and suspense
Asansur Tower is a charming landmark of Izmir
Turkey seeks every day to support tourism and the tourism field in Turkey to raise the country's economy first through tourists visiting the picturesque natural places
What are the elements of investment in Turkey?
Investing in Turkey and reaping real estate that must be taken into account when buying a property
Advantages of the Turkish passport 2023
There are many reasons that lead many Arabs to inquire about the possibility of obtaining a Turkish passport, with the many advantages it gives to those who hold it.
Annual property tax in Türkiye
What is the annual property tax? And what is its value?
Princesses Islands are the most beautiful islands in Turkey
Princes' Islands in Istanbul: A gem in the Marmara Sea with exceptional history and beauty, featuring cultural and natural landmarks that attract visitors to enjoy a unique charm blending history with serene natural beauty.
Arnavutköy area
Arnavutkoy ... the center of promising investments

Real estate News

A new decision regarding real estate residency in Türkiye
Learn about the new decision regarding real estate residency in Turkey, where obtaining a real estate residency requires that the price of the property to be purchased be 200 thousand dollars or more.
The United Kingdom is investing four billion US dollars in Turkey
Reports indicated in some newspapers, including Anadolu Agency, about the planning of the British company Hive Energy, with the support of the British Chambers of Commerce, to invest in Turkey worth four billion US dollars
Economies are collapsing, currencies are falling, and Turkey is out of this equation
After the Corona crisis ravaged the world's economies and scientists reached anti-virus vaccines, and as soon as things began to improve and recover, the Russian-Ukrainian war occurred.
400 Thousand US Dollars, a Simple Amendment to One of the Conditions of Obtaining Turkish Citizenship
The Turkish Official Gazette published at dawn today, Friday, May 13, the decision of Turkish President "Recep Tayyip Erdogan", which stipulates raising the value of the property that grants its owner the right to obtain Turkish citizenship from 250 thousand to 400 thousand US dollars.
exceptional project from a government that cares about its people
 Recently, the Turkish government has introduced a residential project, land suitable for construction and industrial zones in all Turkish provinces
The Clash of Giants over One of the Major Markets, and the Turkish Overcomes
In the midst of the crises the world is witnessing, such as wars, conflicts and the collapse of economies, the Turkish Real Estate Market has registered remarkable progress with the rise in the average cost of houses in Turkiye
Accord and new horizons, Ankara and Riyadh
 As a kind of confirmation of improved Saudi-Turkish relations, Crown Prince Mohammed bin Salman visited Türkiye for the first time
Closing Some Neighborhoods in Türkiye to Foreigners; a Resolution in Your Favor 
As of July 1, the number of neighborhoods in which the process of registering and changing residence of the foreigners will be closed
Tourism recovery in Turkey 2022
After the Corona pandemic hit all the world's countries, tourism declined in many of the countries that pioneered it
Trabzon Receives Its Saudi Loved Ones After a Long Absence
After a long absence because of the coronavirus pandemic, Saudi tourists returned to Türkiye to enjoy their summer vacation as Trabzon was their first choice.
Real estate Articles
Watch a video
Real estate opportunities
Featured Projects

Projects in Turkey

Realestates in Turkey

Let us tell you with new

By joining mailing list